1. Technical Field
The present application is directed generally to REIT-based property return indexes and in particular, creating indexes of property market returns according to target characteristics of properties held by the REITS. The present application is also directed generally to creating vehicles, based from such indexes, that approximate prices in the private property market.
2. Description of Related Art
Growing quantities of commercial property equity assets are being held by publicly traded securitized real estate companies, known as Real Estate Investment Trusts (REITS). Public stock exchanges are generally regarded to be more efficient and liquid than traditional private property markets, in which real estate assets trade directly in privately negotiated transactions. However, REITs' diversification across geographic regions and types of property usage, as well as REITs' leverage, inhibits analysts' abilities to use REITs' liquidity for making targeted investments according to desired characteristics of property holdings. Further, REIT-based indexes that track property market segments reflect stock market valuations of the segments and exhibit transient movements inherent in REITs.